Oil Prices Plunge Sharply After Trump Announces Israel-Iran Peace
Global oil prices plunged to their lowest level in more than a week on Tuesday (24/06), after US President Donald Trump announced that Israel and Iran had agreed to a total ceasefire. This statement directly expressed market concerns about potential supply disruptions from the Middle East region. Brent oil fell 2.9% to $ 69.40 per barrel, while WTI fell 3% to $ 66.48 per barrel, after touching its lowest point since June 9.
The ceasefire announcement follows the escalation that occurred after the US attack on Iran's nuclear facilities last weekend. Investors who had previously hunted oil due to geopolitical risks are now starting to withdraw as tensions are expected to ease. Analysts believe that if the ceasefire is fully complied with by both parties, oil prices are likely to stabilize and supply pressure from Iran could be reduced.
However, risks remain. The Strait of Hormuz — a vital route for world oil shipments — remains a major concern for the market. Analysts stress that oil prices will only rise sharply again if there is a major disruption to global supply. For now, the rally that took oil prices to a five-month peak appears to be easing, as the “risk premium” of war fades from market prices.
Despite ongoing tensions — including Iran’s threat to close the Strait of Hormuz and an attack on its nuclear facilities — global supply is considered relatively secure. Many OPEC+ countries are ready to fill the gap, while the US remains a reliable supplier. However, if a major route like Hormuz is closed, prices could potentially spike.(ayu)
Source: Newsmaker
